This evaluation presents an independent assessment of the Bank's support for financial sector reforms over the period FY93-03. It assesses the extent to which the objectives of Bank assistance were achieved, including reducing government ownership of financial intermediaries, decreased market concentration, increased competition and efficiency, healthier and more stable financial intermediaries, and deeper, more developed financial systems. It also examines Bank support for financial sector reforms in countries under crisis.

"This report is a synthesis of three evaluations carried out by the Independent Evaluation Group and completed between July 2005 and February 2006, on different aspects of Bank assistance to financial sector development in client countries. The three evaluation reports are World Bank Lending for Lines of Credit: An IEG Evaluation; IEG Review of World Bank Assistance for Financial Sector Reform; and Financial Sector Assessment Program: IEG Review of the Joint World Bank and IMF Initiative. This paper seeks to draw out common themes and issues that have arisen from the three evaluations, which reviewed major components of the Bank's assistance during more than a decade to the financial sectors of client countries."

Soon after its declaration of independence, Lithuania launched a program of market-based economic reforms that achieved remarkable results. However, a banking crisis erupted in January 1996, driven by a combination of ineffective bank supervision, poor bank practices, and deep-rooted sectoral imbalances. With financial support from the World Bank, Lithuanian authorities embarked on a broad economic reform program with two immediate objectives: the resolution of the banking system's operational and undercapitalization problems, and a reduction in the most severe imbalances in the economy. Volume I (see ordering information below) distills findings and conclusions and builds a policy action plan for fast stable growth. Volume II contains a collection of twelve policy notes that provide the technical analysis behind that plan. Also available: Volume II/Analytical Backgroung(ISBN 0-8213-4327-0) Stock no. 14327.

The effectiveness and efficiency of a country's public sector is vital to the success of development activities, including those the World Bank supports. Sound financial management, an efficient civil service and administrative policy, efficient and fair collection of taxes, and transparent operations that are relatively free of corruption all contribute to good delivery of public services. The Bank has devoted an increasing share of its lending and advisory support to the reform of central governments, so it is important to understand what is working, what needs improvement, and what is missing. IEG has examined lending and other kinds of Bank support in 1999-2006 for public sector reform in four areas: public financial management, administrative and civil service, revenue administration, and anticorruption and transparency. Although a majority of countries that borrowed to support public sector reform experienced improved performance in some dimensions, there were shortcomings in important areas and in overall coordination. . The frequency of improvement was higher among IBRD borrowers than among IDA borrowers. . Performance usually improved for public financial management, tax administration, and transparency, but did not usually with respect to civil service.

This report is a synthesis of three evaluations carried out by the Independent Evaluation Group and completed between July 2005 and February 2006, on different aspects of Bank assistance to financial sector development in client countries. The three evaluation reports are 'World Bank Lending for Lines of Credit: An IEG Evaluation', 'IEG Review of World Bank Assistance for Financial Sector Reform', and 'Financial Sector Assessment Program: IEG Review of the Joint World Bank and IMF Initiative'. This paper seeks to draw out common themes and issues that have arisen from the three evaluations, which reviewed major components of the Bank's assistance during more than a decade to the financial sectors of client countries.

"The Financial Sector Assessment Program (FSAP) is a major initiative, undertaken jointly by the World Bank and the IMF, in response to the financial crises of the late 1990s. The ultimate objectives of the program are (i) the identification and resolution of financial sector vulnerabilities and their macroeconomic stability implications; and (ii) fostering financial sector development and its contribution to economic growth. In addition, the FSAP was expected to help the Bank, Fund, and other institutions design appropriate assistance to address issues identified by the FSAP. The evaluation found that the FSAP is a good quality diagnostic tool. Joint Bank-Fund cooperation has allowed an integrated approach towards financial sector vulnerabilities and development needs, and has expanded the depth and quality of the skills base. The assessments, however, fall short in prioritizing recommendations and integrating the findings and recommendations of the assessments into its overall programs."

At head of title: IEG World Bank, IFC, MIGA.